The move is consistent with the past expansion strategy of Vodafone. Its traditional expansion policy in foreign territories has been to take a controlling share of an overseas company so it can influence strategy.
As of December 11, Vodafone increased its stake in Panafon to 82.951%, and announced it was launching a public offer for the remaining outstanding shares in Panafon it did not already own. It put a time limit on the offer of January 22.
As of January 7, Vodafone has raised its stake to 86.632%. The mobile giant will pay 6.18 euros ($7.86) in cash for each share, funded out of its existing cash resources. The board of directors of Panafon have already conceded that the offer price of 6.18 euros is both fair and reasonable, and have recommended that remaining shareholders accept the offer, subject to any competing or revised offer.
However, it remains to be seen whether the shareholders will listen to the advice or will be tempted to hold out for an increased offer, although Vodafone has already insisted that the offer price is final.
Subject to reaching 95% or more of the total voting rights in Panafon, the Newbury, UK-based wireless carrier intends to seek the de-listing of Panafon’s shares from the Athens Exchange, in accordance with Greek regulations.
This article is based on material originally produced by ComputerWire.
